The Canadian unit of French renewable energy company EDF Energies Nouvelles, has launched construction of three solar photovoltaic projects in in Rideau Lakes, Ont., with 36 megawatts in combined output.
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EnXco, the North American clean energy unit of France’s EDF Energies Nouvelles, has signed a 20-year power purchase agreement with San Diego Gas & Electric for the output of the 140 megawatts Pacific Wind Farm set to be developed in Southern California.
First Solar, the world’s largest thin-film maker of photovoltaic panels (PV), announced strong second quarter numbers yesterday, registering revenues of $525.9 million, up from $418.2 million in the first quarter of 2009 and $267.0 million generated in the second quarter a year ago.
Not bad, given the poor economic conditions.
Also, while the clean tech sector is expecting growing demand in the U.S. due to the inflow of stimulus money — some $16 billion – which is expected to make its way to developers in September, the reality is that First Solar generates much of its revenues in a single market: Germany. Germany accounts for a whopping 90 percent of the sales registered this quarter by the Tempe, Ariz., company. Thanks to generous government subsidies and a sophisticated system of feed-in-tariffs, Germany is a green powerhouse with 5,498 megawatts of installed PV power. Spain follows suit with 3,291 megawatts.
First Solar’s European market share is poised for growth with the company’s plans to construct a new PV manufacturing plant in France with EDF Energies Nouvelles, the renewable energy company half-owned by French utility EDF. In a conference call on Thursday, First Solar CEO Michael Ahearn said the “deep and broad commitment” of the French government, which seeks to generate 23 percent of its electricity by 2020 from renewable resources, is motivating its French investment.
As for the general funding environment (an issue that we’ve been tracking at GER), Ahearn said he expected the situation to remain tight for the remainder of 2009, noting that project finance outside of Germany would “remain somewhat constrained” and access to construction capital “would continue to be a challenge.” Ahearn roughly estimated First Solar would supply some 2 gigawatts of PV panels to the German market.
Do you agree with GER’s projection on the slow funding environment for the second half of this year? Let us know what you’re experiencing on this front by posting in the Comments section of this page.
Another indicator of tight funding situation are the rising inventory of finished products, which First Solar CFO Jens Meyerhoff, said rose to more than 16 days, from about 6 days in the first quarter.
Based on GER reporting, (take a look here and here), we are seeing some improvement in the funding situation. Just yesterday, we wrote about venture capitalists making a comeback, but the sector has not yet turned the corner, and likely won’t, until project finance is able to make a healthy return.
First Solar and EDF Energies Nouvelles, the renewable energy company half-owned by France’s national electric utility, EDF, announced on Thursday plans to jointly build a thin-film photovoltaic manufacturing plant in France that could produce as much as 100 megawatts of solar panels a year by 2011.
First Solar, one of the world’s largest makers of thin-film PV panels, brings experience and scale, allowing for one of the industry’s cheapest costs of production – likely one of the arguments that convinced EDF EN to form a venture with the Tempe, Ariz., company. Earlier this year, First Solar reached an “industrial milestone” when it lowered its cost per megawatt from $3 (four years ago) to a mere $1.
This year also saw First Solar move into the power generation business with its acquisition of the project pipeline of utility-scale solar plant developer OptiSolar for some $400 million. Despite a promising technology, OptiSolar fell victim to the economic/credit crisis and was forced to sell itself after it was unable to secure financing to support its long-term growth.
EDF EN plans to finance a portion of the plant construction by tapping into the €500 million ($710 million) the company raised last year specifically to grow its solar generation portfolio. For some, EDF EN is mainly a wind generator, but it seeks to get into solar generation and as such, has been developing two solar farms that over the next three years will produce aroud 20 megawatts in solar-generated electricity – the First Solar – EDF EN plant will likely supply these two projects with solar panels.
France, with about 121 megawatts in installed PV solar generation is dwarfed by Germany (5,498 megawatts) and Spain (3,291 megawatts), according to BP‘s annual Statistical Review of World Energy. This first of three plants is part of an overall objective by the French government to increase the country’s solar generation capacity to 500 megawatts by 2012.
Interestingly, EDF EN is growing its PV portfolio at a time when prices for traditionally expensive PV panels are falling. In a recent research note Barclays Capital’s solar analyst Vishal Shah says falling PV prices over the 2009-2012 period could convince major power generators to turn to PV for large utility-scale projects.
According to Shah:
“Solar thermal companies have dominated the utility solar landscape to date with several large project wins; however, with solar PV cost declining significantly, the advantage of solar PV technology over solar thermal…has recently increased.”
French daily Le Monde reports the EDF EN and First Solar are each expected to invest some €45 million in the project.
